The Supreme Court of India has stayed all proceedings for attachment of Future Coupons (FCPL) and Future Retail (FRL) assets pending before the Delhi High Court on Thursday, giving relief to Future Group. The court also issued notice on a plea by Future Group against Delhi HC's order of attachment.

Earlier in March 2021, Delhi HC had directed for attachment of assets of FRL and Future Coupons FCPL. HC had earlier directed that failure to secure a stay from the SC will cause it to enforce its order.

The apex court said it is trying to balance the interests of all the stakeholders and directed markets regulator SEBI and competition watchdog CCI to not pass final orders on approval on the deal for four weeks.

Speaking for FRL, advocate Harish Salve said e-commerce giant Amazon invoked the arbitration under the agreement with FCPL, "FRL is not a party to the arbitration agreement."

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Regardless, Amazon would be violating rules if it is held Amazon has any interest in FRL, the "government has not allowed FDI in multi-brand retail," he argued.

In March, besides restricting FRL from going ahead with its deal with Reliance Retail, Justice Midha had imposed costs of Rs 20 lakh on the Future Group and others associated with it and ordered attachment of their properties. The court had asked the parties to file an affidavit detailing their assets within one month and show cause as to why they are not detained under civil prison for three months for violating the emergency arbitrator's orders.

Earlier this month, the Supreme Court held that Singapore's Emergency Arbitrator (SEA) order is enforceable. It had pronounced the verdict in favour of Amazon and against the merge of FRL with Reliance Retail. The court had also held the EA award, restraining the Rs 24,731 deal.

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(Edited by : Yashi Gupta)

First Published:Sept 9, 2021 1:10 PM IST